AI-focused investment firm Mindflair still trades at a significant discount to NAV despite the realisation of an investment representing 50% of their market cap.
Mindflair is another example of London’s inability to value technology-related companies properly.
The company delivered very respectable full-year results with net asset value surging 85% to £10.8m and income swinging to £3.2m profit compared to losses of £2.7m in 2023. The turnaround was driven primarily by the strong performance of its Sure Valley Ventures investments, particularly the valuation increase in Infinite Reality.
Many of Mindflair’s investments are privately held, which may explain some of the discount to NAV. But 50% seems like too much of a disconnect.
Mindflair’s NAV per share of 2.05p at the end of the period compares to a current share price of 1p, which is surely an unfair assessment by the market as to the outlook for their portfolio.
The sale of their holdings in Getvisibility, generating £2.6m, is a validation of their strategy and investment selection capabilities.
Portfolio activity was particularly active, with Mindflair benefiting from the disposal of Landvault to Infinite Reality for US$450m headline consideration in July. They made six new investments through SVV2 and initiated activity in SVV3 with stakes in Inspeq AI and Jentic AI.
Mindflair offers both value and diverse exposure to AI adoption.